Jaguar Mining sets C$110.55 million deal; Bankers Petroleum to raise C$60 million

By Sara Rosenberg

New York, Jan. 31 - Jaguar Mining Inc. announced one of the larger deals of the day, a C$110.55 million private placement of shares, and Bankers Petroleum Ltd. also revealed plans for a sizeable transaction.

Jaguar Mining said on Thursday that it has entered into a bought deal under which it will issue 8.25 million common shares at C$13.40 each, for gross proceeds of C$110.55 million.

RBC Capital Markets will lead a syndicate of four underwriters for this deal, which is expected to settle Feb. 21. The underwriters have a greenshoe for up to 1,237,500 shares, or C$16.58 million.

"There's lots of ways you can do these things. Our board evaluated all the options presented by different investment bankers [and] came with the decision for the bought deal," a company spokesman said.

"[Options] ranged from overnight to a fully marketed transaction. [We looked at] risk, time, volatility, uncertainty. [Also at] gold prices, stock price and company needs.

"Management preference would be something that could be fully marketed. Inherent in that is this much longer process and in that longer process many things could happen. Given that risk, the board chose not to run the risk," the spokesman explained.

As for the deal itself, the spokesman said that RBC and the four additional brokers had probably already sold most, if not all, of the shares already.

Proceeds of the offering will be used to fund a significant expansion of the company's Brazilian projects and for general corporate purposes.

The company's stock closed at $13.26, down $1.19, or 8.24% (NYSEArca:JAG).

Jaguar is a Concord, N.H.-based gold exploration company.

Bankers Petroleum plans PIPE

Bankers Petroleum revealed on Thursday that it is doing a C$60 million non-brokered private placement, representing 66,666,666 common shares, at a price of C$0.90 per share.

The price represents a 17% premium to the Jan. 30 market closing price of $0.77.

Sprott Asset Management will subscribe for 55,555,555 common shares for gross proceeds of C$50 million and Blackrock Investment Management will subscribe for 11,111,111 common shares for gross proceeds of C$10 million.

Subsequent to completion of the private placement, Sprott will hold 15.2% of the company's issued and outstanding common shares and Blackrock will hold 13.7%.

"We've been approached by the funds looking to increase their equity position," a company spokesman told Prospect News when asked why the choice was made to do this particular deal.

"Immediate funds. No fees," the spokesman added.

According to the spokesman, the company does not currently have any plans to another private placement in the near future.

Proceeds will be used to fund exploration and development programs in Albania and the United States, a recently announced Albanian acquisition, and for general corporate purposes.

The financing is scheduled to close on or about Feb. 5.

The company's stock closed at $0.90, up $0.13, or 16.88% (Toronto: BNK.TO).

Bankers Petroleum is a Calgary, Alta.-based oil and gas exploration company.

Cardium does direct offering

Cardium Therapeutics has agreed to conduct a $5.31 million direct offering of stock and warrants with institutional and other accredited or qualified investors.

Under the offering, the company will sell 2.655 million common shares at $2.00 per share. Investors also will receive warrants for 929,250 common shares, which are exercisable at $2.00 for five years.

Empire Asset Management Co. acted as the sole placement agent for the transaction that was expected to close on Thursday.

Proceeds will be used in the further development of the company's ongoing programs, as well as for other general corporate purposes.

"[This is the] first one we've actually done under the shelf we filed last summer," a company spokesman said.

When asked whether the company has plans to do more offerings like this in the near future, the spokesman said that it's hard to say. "Need to basically have options to us as we go forward to move our products forward," the spokesman added.

The company's stock closed at $2.40, up $0.02, or 0.84% (AMEX: CXM).

Cardium is a San Diego-based developer of therapeutic products and devices for cardiovascular, ischemic and related disorders.

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